January 3, 2008

UK poultry farmers to lessen in number as high farming costs prevail

Nearly one-quarter of poultry producers are likely to stop production as farming costs continue to skyrocket, according to National Farmers Union (NFU) and Poultry World.

In a survey conducted by NFU and Poultry World, 23 percent of respondents in UK said that a combination of factors, including the cost of new legislation, is likely to shaken or stop their production.

During the survey, 46 percent of the respondents were breaking even while 15 percent were incurring losses.

Last year, meat producers reeled from rising costs of feed. There were 70 percent of the respondents who considered feed costs as the most important factor in the their total production cost.

Another key factor identified affecting the industry is the removal by the treasury of the agricultural buildings allowances. Other factors were planning permission and the new salmonella testing rules in layers.

Due to escalating costs, 30 percent of poultry meat producers were likely to abandon expansion plans while one-third of egg producers said they were reducing business size.

However, NFU rural economy adviser Richard George expressed that it may not be so bad since it could open an opportunity for the next generation to take over and drive the sector forward.